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Q. James Lawson's Bed also Breakfast, in a small historic Mississippi town, must decide elucidate how to subdivide (remodel) large old home which will become its inn. There are three alternatives:
Option A would modernize all baths also combine rooms, leaving inn with four suites, each suitable for two to four adults.
Option B would modernize only second floor; results would be six suites, four for two to four adults, and two for two adults only.
Option C (status quo option) leaves all walls intact. In this case, re are eight rooms available, but only two are suitable for four adults; also four rooms will not have private baths. Below are details of profit also demand patterns which will accompany each option:
a) Draw decision tree for Lawson.
b) Which option has highest expected value?
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